Experts in real estate & investments from the Association of Commercial Building Owners in Bulgaria (ACBO) shared their knowledge with EMFBRE students in Sofia as a part of the SDA Bocconi and AUBG joint venture program on April 12. The discussion represented the start of the ninth module of the 16-module program, which brings world-class executive business education to the region.

Federico Chiavazza, corporate finance and real estate specialist and SDA Bocconi professor, talked about the EU and the real estate markets in emerging economies. He discussed the world-wide macroeconomic environment and difficulty to find yields for investors.

“Today real estate markets are not competing through countries, but through cities,” said Chiavazza, pointing out the possible need for more infrastructure in the next 10 years. Comparing European capitals in terms of investment opportunities, Sofia represents the “local demand-driver for property market,” where the buying power of citizens increases, he said.

Olga Stoichkova, Commercial Director at Ceres Management Services and the Deputy-Chairperson of ACBO, is an expert in commercial strategy and industrial tenant relationships. She explained how the GDP and overall business growth determines the pace and location of building new facilities. The steady growth of the Bulgarian economy contributed to the inflow of new businesses in Sofia.

“The stable economy is a consideration for companies to come, but not the driving factor,” said Stoichkova referring the low tax level and small rental fees.

Adina Welsh, Executive Director of Raiffeisen Property Management and Member of the Managing Board of ACBO, gave a presentation on soft factors in the office market risk. She explained the types of soft risks in the business, and precisely the quality of tenants and clients, certification and age of buildings.

“You have to look for aspects that preserve the value of buildings,” Welsh said introducing the notion of “green” certification. A “green” building refers to an environmentally-friendly structure, operation, maintenance, renovation and demolition.

Tanya Koseva, Managing Partner at Park Lane Developments Jsc. and Chairperson of ACBO, gave an overview of the Bulgarian investment markets and pointed out its rise in 2017. 70 percent of transaction volume came from the sales of shopping centers. Koseva supported the idea of cities being the markets of today and concluded that “the positivity of the market is about supply and demand.”

The SDA Bocconi and Executive Master in Finance Banking and Real Estate program started in October 2017, attracting experienced professionals looking for development opportunities. The program includes both theoretical and practical knowledge, with an emphasis on the corporate culture.